Matthews Studio Group has announced plans to sell off its grip manufacturing subsidiary, a move the production equipment supplier says will enable it to focus entirely on its core rental business.
The Burbank-based company said it would sell manufacturing arm Matthews Studio Equipment Inc. for $15 million to parent company co-founder Edward Phillips. Phillips will head the new company, which is expected to retain its name. The split includes the transfer of all of Matthews’ shares of common stock in the subsidiary to Phillips in exchange for his 1.9 million shares of Matthews stock. Phillips will also assume $5 million of debt Matthews Group invested in the subsidiary. The deal is expected to be completed by the end of summer.